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Indigenous Refineries To Buy Crude Oil In Naira, Dollar -FG 

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The Federal Government on Monday complied with the demands of domestic crude oil refiners and other operators in the sector with a declaration that indigenous refineries can now buy crude oil in naira or dollars.
At a briefing in Abuja, where it unveiled the new template for domestic crude oil supply obligation, the Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), also disclosed that the total crude oil and condensate reserves in Nigeria increased to 37.5 billion barrels as of January 1, 2024, with a life index of 68.01 years.
It stated that in compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021, the NUPRC in a landmark move, had developed a template guiding the activities for Domestic Crude Oil Supply Obligation.
The Chief Executive, NUPRC, Gbenga Komolafe, told journalists in Abuja that “The commission in conjunction with relevant stakeholders from NNPC Upstream Investment Management Services, representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria, and Dangote Petroleum Refinery came up with the template for the buy-in of all.
“This is in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries”.
On the currency of transaction for crude oil purchase, as approved in the new template, Komolafe stated that it would be either in naira or dollar, adding that naira transactions would free the pressure on the country’s foreign exchange rate.
The NUPRC boss also noted that the template had become effective because all necessary parties had signed up for it.
“The PIA intends to make the implementation (of crude oil obligation) very easy for the parties, both for the producers and refineries. So the answer simply is that the currency for the transaction would either be in naira or dollar. That is the simple answer.
“But we all know that if the transaction is carried out in naira, that itself will free the pressure on the exchange rate. That will help the exchange rate. So that is the intent and besides, the overall intent of the Petroleum Industry Act is to develop our midstream, which is a very laudable provision of the PIA”, he said.
In the currency of payment section of the new template, it was stated that “the payment shall be in either United States dollar or naira or both. Where the payment is in both currencies, the payment split shall be as agreed in the SPA between the producer and the refiner”.
On February 26, 2024, The Tide’s source exclusively reported that modular refineries in Nigeria were facing the threat of shutting down operations following their inability to access foreign exchange for the purchase of crude oil, a commodity priced in United States dollars.
Nigeria has 25 licenced modular refineries with a combined capacity of producing 200,000 barrels of crude oil daily.

Although not all of the plants are currently operational, the report stated that the functional ones were increasingly finding it difficult to purchase crude due to the foreign exchange crisis in the country.

The facilities, which produce Automotive Gas Oil, popularly called diesel, Dual Purpose Kerosene or kerosene, naphtha and black oil, were finding it hard to make the refined products available to oil marketers for distribution to consumers.

Operators of the plants explained that the scarcity of dollars had made it almost impossible for dealers to purchase crude oil, as the modular refinery players and oil marketers demanded the sale of crude oil in naira from the Federal Government.

The modular refinery operators, who spoke under the aegis of the Crude Oil Refinery Owners Association of Nigeria, lamented at the time that the Federal Government had not been able to keep its part of the bargain concerning the provision of feedstock to local crude oil refiners.

The Publicity Secretary, Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko, had stated that modular refineries might close shop if nothing was done to ameliorate the situation.

CORAN is a registered association of modular and conventional refinery companies in Nigeria, while modular refineries are simplified refineries that require significantly less capital investment than traditional full-scale refineries.

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CBN Predicts 4.17% GDP Growth In 2025

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The Central Bank of Nigeria (CBN) has announced that the 2025 economic indices indicate a positive outlook, with the nation’s GDP expected to accelerate to 4.17 per cent for faster economic growth.

Mr Muhammad Abdullahi, Deputy Governor, Economic Policy Directorate, CBN, revealed this on Tuesday during the 11th edition of the National Economic Outlook: Implications for Businesses in 2025.

The hybrid event, convened in Lagos, was organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Ltd.

Abdullahi said the nation’s 2025 economic projections remained optimistic with fiscal and monetary reforms already paying off, resulting in the GDP anticipated rise from 3.36 per cent recorded in 2024.

According to him, the growth is anchored on sustained implementation of government reforms, stable crude oil prices, and improvements in domestic oil production.

Abdullahi also stated that stability in the exchange rate would play a crucial role in maintaining the positive trajectory, with the inflation rate projected to decline due to the impact of economic reforms.

“Achieving the targeted inflation rate of 15 per cent in 2025 will require effective collaboration between monetary and fiscal authorities, alongside private sector participation for a stable economic environment,” he said.

The keynote speaker said that the apex bank would prioritise price stability and strengthen the financial sector to support SMEs and critical sectors for businesses to thrive.

Abdullahi noted that the nation’s evolving policy landscape presented both challenges and opportunities for businesses to thrive.

“The government is making deliberate strides to diversify its revenue streams and reduce dependence on the volatile oil sector.

“Through ongoing tax reforms aimed at broadening the tax base and improving collection efficiency, the government is working to establish a more sustainable fiscal environment.

“While these reforms may present challenges in the short term, they are essential for building a more resilient and diversified economy in the long run.

“As businesses, it is crucial to adapt to these changes, understanding that they will ultimately strengthen the economic foundation for future growth.

“As we move forward on this path of exploration and collaboration, we must remain focused on the vast opportunities before us.

“Nigeria’s abundant resources, coupled with the current administration’s commitment to economic reform, offer a fertile ground for innovation, investment, and sustainable growth,” Abdullahi said.

Similarly, Prof. Pius Olanrewaju, President/Chairman of the Council, Chartered Institute of Bankers of Nigeria (CIBN), said 2024 presented both challenges and opportunities.

He noted that the GDP signalled gradual recovery amidst global and domestic pressures.

“As we move into 2025, we are presented with both the opportunity and responsibility to critically examine the economic landscape.

“This forum will help us identify the risks, harness the opportunities, and strategize for the future,” Olarenwaju noted.

He commended the collaboration of experts at the annual event, which included Dr Kabir Katata, Director, Research, Policy and International Relations, Nigeria Deposit Insurance Corporation; and Dr Henrietta Onwuegbuzie of the Lagos Business School.

Others were Akinsola Akeredolu-Ale, CEO, Lagos Commodities and Fixtures Exchange; Mr Akeem Lawal, Managing Director Interswitch (Pure pay); and Chinwe Uzoho, Regional Managing Director, West and Central Africa Network International.

 

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Minister Inspects Nigeria/Benin Republic-owned Sugar Firm … Decries Decrepit Condition

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Nigeria’s Minister of State, Industry, Federal Ministry of Industry Trade and Investment, John Owan Enoh, has inspected the Savé Sugar Company, a joint venture between Nigeria and Benin Republic, decrying the current decrepit condition of the facilities.
Inspecting the once thriving company located in Cotonou, Benin Republic recently, the Minister expressed  appreciation for the extra security measures put in place by the government of Benin Republic to secure the Savé Sugar Company which was  Established in 1975.
Special adviser to the Minister on Media, Diana Tiku Nsan, said on arrival in Cotonou,  Sen. Enoh paid a courtesy visit on his Benin counterpart, Minister He noted that during the ship’s port calls, the team engaged with the Indian diaspora worldwide.
Approximately 200 individuals received medical attention from the naval health team during the camp, and beneficiaries were also given free medications.of Commerce and Industry, Benin Republic, Shadiya Alimatou Assouman, where a meeting with both ministers resonated with shared concerns and aspirations of both countries.
Assouman said, “this visit marks a historic moment. Since the inception of the company, no Nigerian minister has visited the facility.
“Your bold step signifies a commitment not only to the sugar complex but also to the bilateral relations between our nations”.
The Minister, who proceeded on an on-site  inspection of the facility, observed that the company has experienced changing fortunes and now lies almost decrepit with the last managers, Compliant of China, having vacated in May 2023, at the expiration of a 20-year lease agreement.
After the assessment, the Minister said, “various meetings at both technical and policy levels have continued to be held, but an action is needed.
“This visit is an eye opener, and more than anything else, we seek its revival. The two countries, as a matter of urgency, need to get a worthy core investor within the shortest possible time.
“This is not just about sugar; it is about livelihoods, partnerships, and the shared future of our nations.
“However, where that is not feasible, the recommendation of the 2021 joint assessment report which submits to the selling of our equity in the company will be brought to the table for possible consideration. Action starts today”.
Nsan also said “the deteriorating situation with the Savé Sugar Company Ltd predates the exit of the Chinese. A joint assessment visitation in 2021 was quite damning and recommended that Nigeria sell its equity holding in the company.
“This was declined by the Buhari administration, which instead preferred that upon expiration of the lease agreement with Compliant of China, the two governments competitively source for new core investors.
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NGA Becomes Official Partner To 29th Gas Conference … As President Set To Address 2025 World Summit

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The Nigerian Gas Association (NGA) has been officially announced as an “Association Partner” for the 29th World Gas Conference (WGC) 2025, which will take place from May 19 to 23 in Beijing, China.
The WGC 2025 is organised by the International Gas Union (IGU) and hosted in 3-year intervals.
It is the largest and most influential event in the global gas industry bringing together thousands of industry leaders, policymakers, gas executives, specialists, and exhibitors.
The event serves as a critical platform for discussing the future of the gas sector, showcasing innovations, and facilitating high-level collaborations among key stakeholders.
President of the NGA, Akachukwu Nwokedi, will join global energy and gas leaders who will headline the event as speakers.
The conference, billed to focus on the theme, “Energising a Sustainable Future”, is projected to have over 30,000 participants from 70 countries, including 600 companies, 300 exhibitors, and 400 expert speakers.
Nwokedi will emphasise Nigeria’s critical role as a major global natural gas market player.
With over 200 trillion cubic feet of proven gas reserves, Nigeria is Africa’s largest resource proprietor and one of the top ten globally.
Nwokedi will detail Nigeria’s initiatives aimed at exploiting these vast reserves to drive domestic economic growth, secure energy supply, and contribute to international sustainability goals.
Reflecting on the upcoming event, Nwokedi said, “We are proud to have the NGA support the WGC 2025 as an Association Partner.
“The World Gas Conference is a key forum for sharing knowledge and driving meaningful dialogue on the future of natural gas, particularly as the world grapples with the need for a balanced energy transition. Nigeria has a wealth of natural gas resources that, if appropriately harnessed, can position us as a leader in global energy markets.
“The WGC will be a veritable platform for sharing updates on recent industry initiatives, which aims to showcase Nigeria as a destination for gas investments, boost the country’s domestic economic growth and the role of gas in Nigeria’s decarbonisation efforts.
“I am honoured to have been invited to speak as the leader of Africa’s leading gas advocacy group to expound on Africa’s plans to harness untapped natural gas reserves in providing energy security for its 600+ million undeserved population, and how Nigeria is at the forefront of this energy revolution.
“This is important because we understand that maximising the potential of these resources will require strategic investments in infrastructure, policy reforms, and a commitment to cleaner energy solutions”.
With more than 90 years of history, the WGC has consistently provided a platform for discussing the evolving role of natural gas in the global energy mix.
The NGA invites its members and other natural gas value chain players to participate prominently through sponsorship and inclusion in the Nigerian Pavilion at the conference in China.
As Nigeria’s largest gas advocacy body, the NGA remains steadfast in its mission to promote natural gas as a critical component of Nigeria’s energy future and advocate for policies that support its sustainable development.
Through partnerships with global organisations and platforms like the WGC, NGA aims to ensure that Nigeria maintains its position as a leading player in the energy sector.
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